Pier Silvio and Marina Berlusconi
Mediaset collapse, the expert: “The stock will continue to fall, here’s why”. And on Vivendi…
I off the air of Andrea Giambruno (former partner of Prime Minister Meloni) are just the beginning of the problems for Mediaset. It’s not a good time for Biscione; the stock is falling for the sixth day in a row and, adding up, we are talking about a collapse of close to 12% in value. In simple terms, this can translate into a loss of around 150 million euros in less than a week.
But what is the cause behind these dire financial results? To understand more, Affaritaliani.it asked an analyst who, maintaining the strictest confidentiality, explained what lies behind the collapse of the stock Simple. “In addition to the political case triggered by Andrea Giambruno“, says the expert, “a technical operation recently carried out by the company also had an impact on the loss on the stock market: the ‘reverse stock split’“, explains.
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“Essentially”, he continues, “it is a grouping of shares made to reduce the number of them causing a consequent growth in their value. Previously, in fact, the title of Mfe was divided into group A e B“, He says. “This”, she continues, “may have created agitation on the market by initially devaluing the stock”.
“But, as mentioned before, the most impactful factor that caused these fluctuations is the political case,” the analyst states. “Fears of internal conflict between center-right parties have undoubtedly triggered a shock in the stock market. I believe, however, that this negative influence caused by off-air Strip the News it won’t last much longer,” he explains.
“Why? The Biscione is waiting for the third quarter accounts (and particularly brilliant results are not expected due to the difficulties of the sector) and, once released, the numbers will return to ‘driving the machine’ on the stock market, both for better and for worse”, explains the analyst.
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E Vivendi? “This is a much more complicated discussion. Here the scenarios can be the complete opposite of everything. The Bolloré giant, at least in Italy, has never invested thinking only of purely economic reasons,” he claims. “Vivendi in our country preferred to make strategic investments in power,” she continues.
“Among other things, they lost a lot of money with this strategy, see with Tim where they acquired at a much higher figure than today. It is therefore difficult to say what the next moves will be, we will see.”
But beyond current political events, to scare Mediaset they are also future developments. “The business model of free-to-air television is destined to die,” thunders the expert. “The advertising marketof which the collection is the main fuel of the Cologno Monzese company’s income, is going increasingly worse due to the enormous success of the web and streaming platforms”, he explains.
READ ALSO: With Mediaset or with Meloni? Porro takes sides, a comfortable silence for Vespa
“A company like Mediaset is destined to decline more and more. The business model must change as soon as possible, diversifying its activities as much as possible. Which it is already doing with pay-per-view Mediaset Premium and the platform Mediaset Extra“, explains.
“Probably,” he continues, “in the future the company’s top management will choose to merge with other companies (which is already happening with Mediaset Spain e ProsiebenSat of which Mediaset is the main shareholder (close to 29% of the capital) in order to regulate the increasingly limited earnings with a greater volume”. All that remains is to wait for the next moves, it will be fun.
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